# Tax Administration Systems # Tax Administration Systems ## Definition The organizational structures and methods by which taxes are collected, including direct government administration versus farming taxes to private contractors, which significantly affect the efficiency, cost, and fairness of tax collection. ## Source Chapter Book V, Chapter 2 ## Context Smith compares different systems of tax administration, arguing that direct government collection is generally more efficient and less burdensome than farming taxes to private contractors, who seek excessive profits at public expense. ## Economic Domain General Theory ---